The TUI tourism group plans to expand its range of affordable trips in Maspalomas and the south of Gran Canaria to take advantage of the disappearance of FTI Touristik.
"We still have a lot of work to do to make up for lost ground. We are investing significantly to strengthen our offering," said Benjamin Jacobi, director of TUI Germany, during the ITB tourism fair in Berlin after a meeting with Gran Canarian operators.
This strategy is in response to the void left by the collapse of FTI, once the third largest tour operator specialising in budget travel. In addition, some business partners have warned that current package prices are too high for some customers, which has slowed bookings. In response, TUI has decided to expand its range of three-star accommodation.
"We have made optimistic forecasts for the summer and are using our scale to negotiate more competitive rates, especially for families, a very price-sensitive segment," Jacobi said. Customer surveys of hotel chain TUI Suneo, which focuses on affordable all-inclusive holiday packages, indicate that budget-conscious travellers also want to take multiple trips a year.
Despite a slight cooling in bookings in February, Jacobi said TUI Deutschland maintains good expectations for the peak summer season. "We are seeing increased volatility in booking trends, but this is not a significant concern for us," he said.
In February, TUI announced that summer bookings had increased by 2% compared to the previous year. While the British market experienced a slight decline, Germany has maintained stable sales levels.
